German "Continental" to cut 5,500 jobs

(Patria) - German multinational company "Continental" plans to cut several thousand administrative jobs in its struggling automotive parts division, business magazine Manager Magazin reported.

The automotive display and driver assistance systems division will cut around 5,500 jobs worldwide, Manager Magazin writes, citing informed sources.

This is slightly less than three percent of "Continental's" total of 200,000 employees, according to data from the end of September.

"They plan to cut primarily administrative jobs, while those in production and development will apparently be spared for now. "Continental" will cut at least a thousand jobs in its home country, Germany," the report states.

By cutting jobs, division head Philipp von Hirschheydt aims to save around $400 million annually from 2025.

The company could save approximately half of that amount as early as 2024 and return to profitability.

"Continental's" automotive division employs 100,000 people and generated a turnover of 18.3 billion euros last year.

In response to a query from dpa agency about the layoffs, a "Continental" spokesperson said they would not comment on rumors.

The company is considering further measures to strengthen the competitiveness of the automotive sector, including possible changes to the administrative structure, to enable faster and more agile decision-making.

He added that he could not say whether a decision had already been made. According to Manager Magazin, the company's plans will be presented to employees via webcast.